Mohawk Industries Inc. Just Got Scalped

Mohawk Industries, not a household name, but Mohawk Industries is a leading global flooring manufacturer for remodeling and new constructions of residential and commercial markets. From carpet, rugs, ceramic tile, laminate, wood, stone and vinyl flooring, Mohawk supplies it. Its core brands include: American Olean, Daltile, Durkan, Karastan, Marazzi, Mohawk, Pergo, Unilin, Quick-Step and IVC.

Mohawk Industries Inc. reported their second-quarter earnings on Friday.  They beat profit expectations, but missed on revenue.  In addition, forecasted a dismal third quarter.  The news was enough to send the stock down double digits making them the biggest decliner listed on the NYSE.

Mohawk CEO Jeffrey S. Lorberbaum said in a statement that “most markets we operate in remain soft, with pressure on volume and pricing, and we anticipate the environment to remain difficult.”

Lorberbaum said Mohawk is taking action to address the uncertain business environment, with plans to streamline operations, consolidate facilities, and take out higher-cost assets. “We are reducing overhead structures and controlling investments,” he said. “We are improving our administrative costs while investing in sales to support new products and enter new geographies.”

Source

Given the recent news on the state at Mohawk Industries, the chart suggest price is going to retest the weekly demand at $105.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

About the author: TIMM Trader
Uniting Experts & Novices for Mutual Profit!

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